Rental Increases Legality

jamesebaker

We received a letter from our landlord complaining about a few issues which were dealt with over the phone a while ago. At the end of the letter we were informed that the rent would be increasing by 6.84% which I feel is too much of an increase. We have been in the property for just over a year (although my girlfriend has been in the property longer), I don't think we have a current contract (as it ran out and was never renewed as we thought we had a reasonable landlady).

Can landlords raise the rent by whatever they want? or should it be at the rate of inflation.

I know there is a rent assessment committee which you can use and I will approach them as soon as I know where I stand. Any advice would be gratefully received.

GreenB_2

what is 6.84% - £30 or £40 ?

Using a percentage is not a "fair way" of explaining the increase.

In some areas of the country I believe that rental rates are increasing. Perhaps the increase is bringing back in line with other properties.

What you need to do is compare the rental price with that of other similar properties.

jamesebaker

£40
From £585 to £625

michaels

I was threatened with an increase (in two stages) from 500 to 750. There is a board you can refer it too but their criteria is not the change in rent but whether the new rent is market reasonable - in my case it was and I knew it was so I bought a house insteaqd and the place was rented straight away at the higher rent.

kinesin_2

Due to an over supply of empty BTL and OO renting their current houses and getting bridging loans to cover purchases newer places rents in general are on the fall. Have a good look at your local market and mark a few offers at 10-15% off the listed rent price, you might be suprised.

Remember we are slowly been drawn into an economic slow down, and rents naturally fall at these times. It is therefore better for a LL to have tenents paying 80% costs then having a void getting zero% back.

Natelle_2

jamesebaker wrote:

We received a letter from our landlord complaining about a few issues which were dealt with over the phone a while ago. At the end of the letter we were informed that the rent would be increasing by 6.84% which I feel is too much of an increase. We have been in the property for just over a year (although my girlfriend has been in the property longer), I don't think we have a current contract (as it ran out and was never renewed as we thought we had a reasonable landlady).

Can landlords raise the rent by whatever they want? or should it be at the rate of inflation.

I know there is a rent assessment committee which you can use and I will approach them as soon as I know where I stand. Any advice would be gratefully received.

1. The original agreement that your girlfriend signed would almost certainly have been an Assured Shorthold Tenancy for possibly a minimum of 6 months or 12 months. You do have a current rental agreement as at the expiry of the minimum period the original agreement will have changed to a Periodic Shorthold Tenancy with a continuation of the terms as originally signed.
2. A Landlord can ask for an incresae of any amount that he/she believes is right for the property. it is usual to base any increased rental on the current market value obtainable for the type of property concerned. The percentage increase is irrelavent inrespect of the current rate of inflation.
3. You mentioned that your girlfriend has been in the property longer than you have. It is worth you looking into the terms of the original agreement and the names of the tenants on that agreement. All persons over the age of 18 years living in the tenanted premises should be noted on the agreement, either as tenants or occupants, or as an addendum. It might be worth your while negotiating a new Assured Shorthold Tenancy, to give you a better security of tenancy and possibly lower increase of rent.

You might like to look at the following information on rental increases https://www.housing.odpm.gov.uk/order/aaalandlords/07.htm . It's written for landlords but will help you.

Hope this helps.

GreenB_2

£40 a month increase is not that much (Less than £10 a week)

Whilst there are less people (especially FTB's) purchasing houses, expect increased rental charges as demand increases as there is more competition for decent rental properties.